Canada's Fairborne says may put itself up for sale

Reuters Staff

1 Min Read

(Reuters) - Canadian oil and gas explorer Fairborne Energy Ltd FEL.TO said it may put itself up for sale as it explores strategic options to increase shareholder value, with other alternatives including a merger, recapitalization and the selling of assets.

Fairborne, which sold some natural gas assets last year to reduce debt, said it believes the company’s shares are undervalued given its assets.

“(The)shares trade at a significant discount to the value of the underlying assets, especially given its high-quality Wilrich gas, high netback Sinclair oil, recently announced condensate rich Cardium wells and associated inventory at Harlech and approximately $550 million in tax pools,” the company said in a statement.

Fairborne said its board has established a special committee comprised of independent directors to oversee the strategic review process. It has not yet set a definite schedule to complete the evaluation. (Reporting by Sakthi Prasad; Editing by Edwina Gibbs)